IPPAN Urges Political Parties to Prioritize Private Sector Energy Issues in Election Manifestos

The Independent Power Producers’ Association Nepal (IPPAN) has urged political parties to include private sector–related energy development issues in their election manifestos with high priority.

On Friday, IPPAN sent formal letters to major political parties including Nepali Congress, CPN-UML, CPN (Maoist Centre), Rastriya Swatantra Party, Rastriya Prajatantra Party, and Ujjwalo Nepal Party, calling for clear policy commitments to promote private investment in the energy sector.

Addressing the top leadership of all political parties, IPPAN stated that Nepal should be transformed into a strong and capable country in terms of energy security and developed as a nation fully utilizing clean and green energy. The association has demanded that Nepal be declared an “energy-friendly country” and that the Electricity Act, 2049, be amended to create a competitive environment through a multi-seller and multi-buyer model by allowing private sector participation in electricity trade, transmission, and distribution.

IPPAN President Ganesh Karki said the letter outlines 13 key demands aimed at strengthening energy development through private sector engagement. “At present, the energy sector has become the backbone of the country’s prosperity and development. If political parties clearly address energy-sector investment issues in their manifestos, it will help attract further investment,” he said. He added that national energy goals cannot be achieved unless the private sector is allowed to participate in electricity trading, transmission, and distribution.

According to IPPAN, the private sector has already produced more than 3,300 megawatts of electricity over the past 26 years. Projects with a combined capacity of around 5,700 megawatts across 190 projects are currently under construction, while 958 projects with a total capacity of 36,336 megawatts are at various development stages. The sector has attracted investments worth nearly NPR 1.3 trillion. Despite this, IPPAN noted that the energy sector is facing growing challenges and requires clear policy direction to sustain investor confidence.

IPPAN also highlighted studies by the Water and Energy Commission indicating that Nepal has the potential to generate around 120,000 megawatts of electricity—48,000 megawatts from reservoir-based projects and over 72,000 megawatts from run-of-river projects. However, current production stands at only about 4,000 megawatts.

The association stressed that achieving national targets—such as generating 8,500 megawatts under the 16th Five-Year Plan, 40,000 megawatts by 2100 BS, 28,500 megawatts by 2035 as per the Energy Development Roadmap–2081, and meeting Nationally Determined Contribution (NDC) targets of 14,000 megawatts by 2030 and 28,500 megawatts by 2035—requires clear policies and action plans to be included in party manifestos.

Among IPPAN’s key demands are opening power purchase agreements (PPAs), ensuring policy stability, protecting domestic and foreign investments, promoting electricity consumption through industrial growth, exporting clean energy to neighboring countries, simplifying the use of forest land for energy projects, declaring the energy sector strike-free, forming a National Energy Development Council under the Prime Minister’s leadership, and establishing an Energy Academy to develop skilled human resources for hydropower development.

IPPAN concluded that only through strong government–private sector collaboration and clear political commitment can Nepal fully harness its energy potential and achieve long-term economic prosperity.